When Starbucks opens a location in Mexico City,this is an example of:

Question

Quizplus · Accepted Answer

Starbucks opening a location in Mexico City involves investing in a physical location and operations within a foreign country, which is known as foreign direct investment. The company is making a long-term commitment to its operations in Mexico City, and it will have ownership and control over its operations in the country. Arbitrage opportunities deal with exploiting market inefficiencies to make risk-free profits, which is not applicable here. Management of capital budgeting issues refers to the process of allocating funds to different projects, which may be relevant to the decision of opening a new location but is not the best answer for this specific question.

When Starbucks Opens a Location in Mexico City,this Is an Example